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The chancellor will announce Labour’s first Budget in 14 years tomorrow, main one of essentially the most anticipated fiscal occasions in over 20 years.
Ahead of her announcement, the chancellor has introduced extra particulars of NHS spending, pledging funding for two million additional appointments.
But well being secretary Wes Streeting has warned that the NHS nonetheless faces “real problems this winter,” including that “one Budget can’t undo 14 years of damage.”
The chancellor has additionally been warned that rumoured plans to extend employers’ nationwide insurance coverage contributions (NICs) might hit 700,000 staff with a £400 tax rise.
This is the quantity of people estimated to be working for ‘umbrella companies’ as contractors or freelancers. Due to a loophole in these staff’ tax standing, they may typically discover themselves overlaying their employers’ NICs.
Andy Chamberlain, of self-employment physique IPSE, stated: “It’s difficult to see how this wouldn’t breach Labour’s pledge not to raise taxes for ‘working people’.”
We’ll be bringing you all the most recent updates forward of the massive occasion right here, on The Independent’s liveblog.
Treasury teases Budget with entrance web page reveal
The Treasury has posted an image on social media of the Budget’s entrance cowl forward of tomorrow’s occasion. The subheading reads: “Fixing the foundations to deliver change.”
Albert Toth29 October 2024 16:00
Chancellor refuses to rule out gasoline responsibility hike
Speaking in Commons, Conservative shadow innovation minister Saqib Bhatti pressed the chancellor to make clear reported plans to finish the continuing freeze on gasoline responsibility.
Mr Bhatti instructed “any rise in fuel duty, which the Conservatives froze or cut for 14 years, would be a tax on those hardworking people or those hardworking small business owners”.
The Chancellor replied: “The previous government factored into their forecast an increase in fuel duty this year. I will set out our plans in the Budget tomorrow.”
The gasoline responsibility minimize – of 5p per litre on diesel and unleaded fuels – was as a result of finish in March 2025, based on the earlier authorities’s spending plans.
Albert Toth29 October 2024 15:40
‘Freebie loophole’ closed in new MP code
The up to date ministerial code will shut the “Tory freebie loophole”, Cabinet Office minister Nick Thomas-Symonds has stated.
Labour MP Kevin Bonavia (Stevenage), requested if the Government will “confirm that we will honour the pledges it made at the election”.
Mr Thomas-Symonds replied: “One of the many things that the Conservative government over 14 years destroyed, trust, I’m afraid was one of them, something this Government is determined to rebuild.”
James Wild, Conservative MP for North West Norfolk, requested: “why has the Prime Minister not yet published an updated version of the ministerial code? Are they still working out whether it is right to accept suits and glasses?”
Mr Thomas-Symonds replied: “We have already said that the Prime Minister will update the ministerial code and publish it shortly, and it’s making sure that it is fit for purpose, dealing with problems like the Tory freebie loophole, and that it meets the high standards the Prime Minister expects.”
Albert Toth29 October 2024 15:00
Starmer chairs pre-Budget assembly
Ahead of the Budget, Sir Keir Starmer chaired a political Cabinet assembly, with out civil service officers.
A Labour spokesman stated: “This Budget is about investment with Labour versus decline under the Conservatives. The Prime Minister opened the political Cabinet meeting by saying that ‘politics is about choices’ and that the Budget tomorrow will show that ‘we are choosing to fix the NHS, rebuild Britain and protect the payslips of working people’, to deliver on our mandate for change.
The Chancellor told ministers “there would have to be difficult decisions on spending, welfare and tax” to cope with the legacy she inherited.
“She said the Labour Party promised there would be no return to austerity and the Budget tomorrow would deliver on that promise. She said the choices the Government is taking will restore economic stability.
“She said the Budget would fix the foundations of the economy and deliver on the promise of change.”
Albert Toth29 October 2024 14:40
‘No-one is going to be happy’: Unions brace for Reeves’ Budget
Union leaders are braced for elevated taxes and spending cuts in Rachel Reeves’ Budget.
The chancellor has already warned she has needed to make “difficult” selections in her first Budget, and the primary one ever to be delivered by a feminine chancellor.
Labour is anticipated to extend employers’ nationwide insurance coverage contributions, prolong the freeze on revenue tax thresholds, enhance in capital positive aspects tax on shares, and shut inheritance tax loopholes.
One union chief instructed the Independent: “The impression we are getting is that no-one is going to be happy”.
Kate Devlin29 October 2024 14:00
Reeves’ first funds is about ‘protecting the payslips of working people’
Rachel Reeves’ first funds is about “protecting the payslips of working people”, the prime minister instructed a political Cabinet assembly.
It comes amid a rising row over the definition of “working people”, with the occasion having promised to not increase nationwide insurance coverage, revenue tax or VAT on these people.
Addressing the assembly on Tuesday, Sir Keir stated “politics is about choices”, including that Wednesday’s Budget will present the occasion is “choosing to fix the NHS, rebuild Britain and protect the payslips of working people”.
The prime minister additionally stated that the “question for the Budget is not whether we must act, it is how we act and what choices we make in the national interest”, a Labour Party spokesperson stated.
Millie Cooke29 October 2024 13:40
We will again the OBR says prime minister
The Government will again the Office for Budget Responsibility (OBR), not trash it, the Prime Minister’s spokesman has stated after Jeremy Hunt complained concerning the physique publishing a overview of the final administration’s spending plans on the identical day as the Budget.
The former chancellor complained that the physique publishing a overview into the “black hole” Labour says it inherited on the identical day as the Budget is just not neutral.
Asked if the Government was utilizing the OBR as a political instrument, Sir Keir Starmer’s spokesman stated: “No, the Prime Minister is clear that this Government is going to back the independent OBR, not trash it.
“The answer is not to blame the referee, face up to the challenges we faced and be honest about the trade-offs and choices the Government face, not pretend they don’t exist.
“That’s why the Government is strengthening the OBR through the Budget Responsibility Act to ensure that it’s never sidelined again, like we saw during the mini budget.
“The Government has been up front about the black hole of the nation’s finances and it fully backs the OBR and the independent scrutiny it provides.”
Albert Toth29 October 2024 13:20
Public needs ‘positive, proactive’ imaginative and prescient from Budget, ballot exhibits
The public needs to listen to a “positive, proactive vision” for rising the economic system and restoring public providers when the Chancellor delivers her Budget on Wednesday, a ballot has discovered.
Polling by Ipsos on the eve of the Budget discovered 84 per cent of folks thought it was vital to listen to about Labour’s plans for enhancing public providers throughout Rachel Reeves’s speech whereas 80 per cent wished to listen to about plans to develop the economic system.
Only 69 per cent stated they wished to listen to concerning the monetary “black hole” in present spending plans whereas lower than half the general public stated it was vital for Ms Reeves to speak concerning the function of the earlier authorities in bringing concerning the present scenario.
So far, extra folks stated they’d heard damaging tales concerning the issues going through public providers and the economic system than about Labour’s plans for the longer term.
Trinh Tu, managing director of Ipsos UK public affairs, stated the general public was “sending a clear message” to the Government – “we know the problems, now give us solutions”.
She stated: “Awareness of the challenges is high, but people are much less clear on Labour’s plans to address them.
Albert Toth29 October 2024 12:30
Starmer says ‘working people’ shouldn’t fear the Budget – but who are they?
As Chancellor Rachel Reeves prepares to deliver Labour’s first Budget in 14 years, we want to hear your views. How should “working people” be outlined? Should excessive earners or these with investments be included? And how ought to this have an effect on selections within the upcoming Budget?
Share your ideas right here — we’ll spotlight essentially the most insightful feedback as they arrive in.
Albert Toth29 October 2024 12:00
Tories urge rethink on winter gasoline fee modifications forward of Budget
Conservative MPs have gathered in Westminster to name on the Government to “think again” about means-testing the winter gasoline fee.
Later on Tuesday, they may hand in a petition to the Treasury forward of Rachel Reeves’ first Budget on Wednesday.
Shadow work and pensions secretary Mel Stride instructed the PA information company that the petition has collected “over a quarter of a million signatures”.
Mr Stride stated that they’re “calling upon the Government to think again about means-testing the winter fuel payment”.
He stated “many” pensioners are going to “really, really struggle”, including: “This Government chose to give well above inflationary pay rises to trade union paymasters when it came to wage settlements and chose to take this money away from some of the most vulnerable people in the country. We don’t believe that’s right.”
Albert Toth29 October 2024 11:30
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